Policymakers use expansionary fiscal policy to stimulate GDP back to its potential level. However, they incorrectly assu

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Policymakers Use Expansionary Fiscal Policy To Stimulate Gdp Back To Its Potential Level However They Incorrectly Assu 1 (19.36 KiB) Viewed 42 times

Policymakers use expansionary fiscal policy to stimulate GDP back to its potential level. However, they incorrectly assume no crowding-out effect. What is the likely final equilibrium GDP impact? O Final equilibrium GDP below potential GDP. O Final equilibrium GDP causes an inflationary gap. O Final equilibrium GDP above potential GDP. O Final equilibrium GDP at a level consistent with full employment. O Final equilibrium GDP at potential GDP.